Turkey's economic crisis deepens as Trump doubles tariffs

'Turkey’s unfolding economic crisis has deepened further after Donald Trump announced a doubling of US import tariffs on Turkish steel and aluminium, deepening the country’s currency freefall and rattling financial markets.

The Turkish lira plunged by more than 17% against the dollar after the president announced the move, amid a widening dispute between Washington and Ankara over the imprisonment of the US pastor Andrew Brunson.

Pressure has been applied on the country in recent days to stage an emergency interest rate rise to avert further economic damage.

Revealing an increase for US taxes on Turkish steel imports of 50% and aluminium of 20%, the president tweeted: “Our relations with Turkey are not good at this time!”

I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar! Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!

Even before Trump’s tweet the lira had already plunged as much as 14% on Friday. It has come under sustained pressure on foreign exchanges, having dropped by a third against the dollar in the past 12 months and hitting a record low earlier this week.'